TracFone in Low-Income Phone Program

The Federal Communications Commission said TracFone, the U.S. subsidiary of Mexico City-based telecom carrier America Movil SA, met certain eligibility requirements needed to participate in the federal program for low-income consumers. Commissioners approved the action on Wednesday.

In exchange for providing the discounts, the carrier can be reimbursed for the revenue it loses through the federal Universal Service Fund, which helps subsidize telephone service in high-cost areas, such as rural and low-income urban communities.

Under the FCC order, TracFone will provide discounts to customers in New York, Virginia, Connecticut, Massachusetts, Alabama, North Carolina, Tennessee, Delaware, New Hampshire, Pennsylvania, and Washington, D.C.

However, the company did not get the designation it sought in Florida. The FCC said the company will have to file a petition with the state public service commission there.

Commissioner Michael J. Copps said in statement the designation will make it easier for low-income consumers to get wireless phone service.

"To some who own multiple phones of every size and shape, such a decision may seem inconsequential; but to the many working poor in this country phone service remains essential to staying connected with family, employers, and the communities in which they live," he said.

More than 1,500 telephone companies participate in the federal program that also provides low-income consumers with telephone installation costs.

Miami-based TracFone has about 9.5 million customers across the country.